Reading assignment: Benefits of the Blockchain technology

[mark.mosley]

Transparency:

Transparency arises from the fact that there are multiple sources, nodes, verifying the blockchain data continuously. This feature of blockchain makes it prohibitively costly to attempt to interject a fraudulent transation and highly unlikely that an error can survive without detection.

Security:

Security arises from the same source as transparency, the distributed ledger with many “eyes” on the data. Thieves don’t normally make successful breakins where they are likely to be seen. Mistakes are quickly detected and remedied for the same reason.

Improved traceability:

Every transaction on a blockchain will have its own identifier. There is only one database distributed across many nodes and this makes it straightforward to locate all instances of a specific transaction across the blockchain.

Increased efficiency and speed:

Blockchain holds the potential to eliminate or decrease intermediate parties in many commercial transactions. As with all innovative technologies, inefficient processes are identifed and eliminated, such as paying bills online rather than through postal mail. Blockchain technology, for all the benefits already discussed, has the potential to eliminate vast amounts of now cumbersome, soon to be obsolete, intermediary processes.

Reduced cost:

Costs are obviously reduced as the needless complexity of intermediaries is reduced and eliminated.

[Mauro]

@GoHackYourself9

everyone validates the same encryption

@BullRunner

2. Because each transaction is verified and encrypted by a decentralized network before it is shared publicly, it makes it difficult to hack, fraud or be tampered with, hence more secure.

@Ed1

2 security: because of consensus within the network and stored encrypted and not changeable it is secure.

@cbrowder28

Security: because every transactions has to be agreed on and when approved the transactions are final, also the transactions are encrypted making them even harder to hack it is one of if not the safest way to conduct business.

If the data on the bitcoin network was encrypted no one would be able to verify the transactions. In bitcoin we hash the transaction. However we have privacy coins that hide the transaction data, but we are still able to verify that no one is cheating.

[Mauro]

@sahowe1

Because of the public nature and sensitive data would still need to be encrypted.

That’s why we have privacy coins. However, data on the bitcoin blockchain is not encrypted, its hashed. Either way great observation. Keep up the great work.

[Mauro]

@Adam_Dobroczek

Transparency: Information is clear and available to all parties that have an access to blockchain

The great thing about bitcoin is that anyone can access it and be the part of the network. Bitcoin is a permissionless network.

[Mauro]

@Ed1

3 improved traceability blockchain is for every one available to verify.

Yes. We can track transaction from the very start and see where it all went with 100% accuracy due to the immutability of the blockchain.

[Mauro]

@cbrowder28

Increased Efficiency and Speed: once the purchase is made or transfer has been approved it is immediate with no wait time.

@virgin

Due to the power of different nodes connected together , this makes transaction to happen within secs and very fast unlike traditional banks that takes days.

Not really. Transactions aren’t fast in the bitcoin network. However the chain gives us a fast way to verify the transaction. Auditing is done as soon as the transaction is confirmed on the blockchain. This overall should improve the speed and efficiency. The bitcoin network is currently trying to scale with the help of a second layer solution called “lightning network”.

[Mauro]

@nawab

Security: The security benefits of a blockchain is that you have the same data being updated real time on many different computers which means that if a hacker would like to give malicious information to would not add up he has to hack at least half of the computers running the transaction for people to agree that the information that is being is correct. This is very hard to do especially when a network becomes very big.

The attack does not work exactly like that. But for the start, that’s a good way to think about it. You will learn more as you go on.

[rhotoshi]

Transparency: All transactions are recorded in a pubicly readable blockchain
Security: The blockchain is distributed amongst all network nodes and each block is cryptographically secured. Altering a transaction ends up orphaning or invalidating that block, forking off a new chain disconnected from the original.
Improved Traceability: See Transparency - all transactions are connected to all previous transactions
Increased efficiency and speed: No need to reconcile transactions with “oracles” or tusted third parties - all participants have access to the same cryptographically verified record.
Reduced cost: Elimination of intermediate steps in recnciliation of transaction processes. The existence of the transaction record IS the reconciliation.

[investGeek]

A blockchain makes data transparent, traceable, and more secure by it’s very nature. All data must be agreed upon before it is added or updated, once added it can not be edited without the agreement of the network again, this makes it extremely difficult to cheat the system without all participants knowing, and it’s history obvious. Those 3 bullets all serve to reduce the number of participants necessary in a given transaction. The less people involved the more simple it is the less it will cost and conversely the faster and more efficient it will be.

[GeoffSwan]

Transparency: Blockchain provides decentralized public access to a network data base, where documents have been verified through consensus, therefore achieving transparency.
Security: Blockchain integrates a decentralized system of nodes that must verify the authenticity of a transaction, it also requires the consensus of the network to alter a transaction eliminating fraud and manipulation.
Tractability: Blockchain is a publicly available network, where all verified immutable records are available 24/7/365
Increased efficiency and speed: Blockchain eliminates the need for a third party paper based ledger system that is inefficient, expensive and prone to errors.
Reduced Cost: By removing the inefficiencies of a third party paper based system, costs will be significantly reduced…

[N8ture]

Transparency: allows for us to do business with each other without having to trust no the parties. Nor worry about human error or misconduct

Security: all transactions are secure through nodes on a network and also all transactions have to be approved and validated before they can be recorded.

Improved traceability: makes a digital paper trail that tracks were all goods and services came from.

Increased efficiency and speed: Reduced cost. No third-party intermediary no one to trust. The data on the blockchain is all we need to trust. Only one immutable version of The Ledger for all parties to view

Reduced cost: Record-keeping is performed using a single digital ledger that is shared among participants, you don’t have to use multiple ledgers and you end up with less clutter. And when everyone has access to the same information, it becomes easier to trust each other.

[Reno_Willemson]

Transparency:

Because al transactions are visible for everybody on the network. Blockchain is a plublic ledger where al participants share the same documantation. The only way to update this shared documantation is through consensus, which means that everybody with a copy of this data must come to an agreement.

Security:

Because of consensus, when a new transaction comes in on the blockchain, it must first be agreed upon by all the other participants before it gets accepted. When it does, it will be encrypted and linked to the previous transaction. Also, because blockchain is a global network of computers, it is really difficult to hack.

Improved traceability:

You can trace your ingredient’s or product’s, every step, back to its orgin and can also check in what state it is. So people no longer have to trust eachother because now they can verify it themselves.

Increased efficiency and speed:

Because with blockchain you can automate and streamline all the processes wich normally a third party would do. Also, humans make mistakes so you also get rid of that factor. Besides that, with blockchain you only have one shared, digital ledger, wich is more efficient because everyone has the same info right away. Because of this all the participants can trust eachother and are in no need of intermediaries.

Reduced cost:

Because with blockchain you dont need third partys. You only have to trust the data on the blockchain. And this counts for everybody on it.

[Gss147]

Blockchain is a global database that creates decentralized digital ledgers. Through proof of work technology, that synchronistically traces and verifies all transactions, transparency through consensus is formed. Bockchain’s security is innate because of real-time auditing that is inherently traceable. Blockchain’s protocol creates finality by verifying transactions therefore creating a trustless efficient system. Being decentralized and not permitting or needing third parties, blockchain is trustless and more efficient in both speed and cost.

[juanpedro]

1. Transparency: The use of a blockchain is transparent because of several reasons. The miners all have an individual copy of the ledger. copy of the ledger. On each copy the whole history of every transaction is viewable for everyone.
2. Security: The cryptography and the miners ensure that a transaction which has been verified will be saved on the blockchain. After it is encrypted on the blockchain it is linked with other transactions. In addition to that the transaction is stored in every single copy of the blockchain. This makes it difficult for hackers compromise the transaction data.
3. Improved Traceability: The blockchain makes it possible to trace every single asset on the full journey it has made.
4. Increased efficiency and speed: Using a blockchain technology transactions are automatically recorded. This increases speed and decreases the risk of human errors. In the end this means that transaction can be completed more efficiently.
5. Reduced cost: The financial plus of a blockchain is that a company could save middlemen who control your data. And the company save the time to control the data itself because with a blockchain everyone has permission to see every transaction.

[Mauro]

@migmed

• need to invest a lot in security.

The security comes from the miners that spend electricity. In a way, we all pay for the security collectively.

[Mauro]

@kidsmoney

no lying, everyone has copy can confirm if something was supposed to be done, no need of middle man, don’t have to pay middle men.

Quite short answers. Do you think you could answer each benefit with a couple of sentences? I just wanna help you realize the importance of all does benefits.

[Mauro]

@Samuel_Inclan

2. Security: everything is decentralized and each operation must be verified, the information is unalterable, all transactions are encrypted and saved in the Ledger.
   3.Improved traceability: You can check and track any transaction from its origin.

@Cryptojuice

Security: Again due to distributed ledger technology the information is immutable. Once consensus is reached the transaction is encrypted, and added to the blockchain which is stored on numerous nodes around the globe.

Improved traceability: Every step is recorded in the supply chain and is available to permissioned parties making the entire route traceable.

@Lewy

Security: Transactions are agreed upon consensus. After a transaction is approved, it is encrypted and linked to the previous transaction. Also, the information is stored across a network of computers instead of on a single server.

Improved traceability: Every transaction is saved on to the blockchain.

@FireStorm

Security: Due to consensus we have increased security (data) encryption (data in transit/rest/ in motion) and most importantly the data is stored across a network of computers and not on a file share which makes it difficult or a bad actor (adversary) to compromise
Traceability: There is a complete audit trail from start to finish which aids in verification

@AdamSo02

All data gets saved and encrypted on multiple computers therefore making it hard to be manipulated.

Traceability: All transactions journeys are stored forever in the system and are easy to trace.

@rSatch

everyone on the network can see the information that is encrypted making it near impossible to hack

the ability to track and trace of a product

@rontrader9

Security:
Encryption and the network effect of many computers storing the data ensures that the security of blockchain information is very difficult to corrupt.

Improved traceability:
Transactions can be added and saved to the network but cannot be deleted or altered and therefore there’s always an audit trail of the chain that can be traced back.

@Brenda

• Security - The transaction has to be approved before it can be recorded, it needs to be verified. It then is encrypted and added to the previous transaction. Additionally, it isn’t a transaction on one server, it is on a network of participants and less likely to hack all versus one server.
• Improved traceability - If you are getting products through a supply chain, each item is traced from its origin and all of its steps along the way. This prevents fraud.

@Eric_Toronto

2. Blockchain is more secure than other forms of database because all information in a blockchain is encrypted.

@brygarv

Security: Transactions must reach consensus before they are recorded, once approved the transaction is encrypted and linked to the other end of the transaction. The information is transmitted globally over the network making it very difficult to compromise data.

@sats4all

Security:
After a transaction / change is approved, it is encrypted and linked to the previous transaction. All informations is stored across a network of computers which makes it very difficult for hackers to compromise / alter.

Improved traceability:
A product can be traced all the way from a producer to the end user. Authenticity of a product can be verified and fraud can be prevented.

@Diego_Sanin

Security: Encripted data linked on a decentralized ledger makes it almost impossible for hackers to hack.
Improve Traceability: Since every transaction is added to the blockchain and can not be modified finding information and tracing transactions is a much easier task

@Brenton

Security - Transactions are encrypted and linked. Sensitive information is not stored by central authorities but instead by a network of computers with incentives to tell the truth.

@Steffen

2. after mutual agreement of a transaction, the transaction will be encrypted and stored on the blockchain.

When it comes to bitcoin, transactions are not encrypted, bur rather hashed. This way we secure the transactions and at the same time we can trace them back to their origin. If we encrypted the transactions we would not be able to have traceability. Some cryptocurrencies, such as monero have their focus on privacy. This means you are not able to track the transaction back to the origin point but you are still able to verify that no one is cheating.

[Mauro]

@Cryptojuice

Transparency: Due to the distributed ledger all permissioned parties have access to all information. The information is not added until verified and consensus is reached.

@Eric_Toronto

All copies of the ledger contain the same information, which is accessible by all users with proper permission at all times.

While we do have both permissioned and permissionless blockchains, I would favour the definition of the blockchain more towards the permissionless side. In bitcoin, anyone can join, access and verify the information by themself. I consider that the true power of the blockchain technology.

[Mauro]

@chakrit

4. Efficiency and speed, transaction are recorded in the network faster than other method of recording.

@Diego_Sanin

Increased efficiency and speed: The old banking systems are overrated

While transactions on the bitcoin network are not fast, the network is faster and efficient due to the removal of third parties, having instant auditing, being trustless, no human errors, no confusion, being up 24/7/365 and much more.

[Mauro]

@Eric_Toronto

4. Blockchain is faster and more efficient because time needed for data collection, compilation, and verification is greatly reduced through transparency, provenance, and verification by consensus. These advantages also lead to the elimination of dependence on middle parties in traditional transactions, which in turn raises blockchain’s speed and efficiency.

Very well said.